Basic Accounting Concepts and Business Structures ACC/537 August 13, 2012 Sources of GAAP and Source Hierarchy According to our textbook Financial Accounting, “General Accepted accounting principles (GAAP) have substantial authoritative support. The American Institute of Certified Public Accountants (AICPA’s) code of professional conduct requires that members prepare financial statements in accordance with GAAP. Specifically rule 203 of this code prohibits a member from expressing an unqualified
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Basic Accounting Concepts and Business Structures Different types of businesses use different accounting methods, small businesses tend to use the cash-basis of accounting, whereas the accrual method is a requirement for large business with revenue more than 5 million. Uniformity of accounting information is important when making decisions for or about a business. A hierarchy of sources provides structure for the generally accepted accounting principles (GAAP). Along with the hierarchy of sources
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Abstract In an effort to examine what goes into making a successful business, we will discuss ownership, and funding of a business. We will look at the pros and cons of partnership as a form of ownership. We will look at accounting practices, and marketing of the business to the consumer. We will look at how technology has changed the business and marketing environment and a company’s social and environmental responsibility. Starting, Financing, and Marketing a Business A business is any activity
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Marketing a Business Identify the pros and cons of the partnership as a form of ownership. The simplicity and flexibility in creating a partnership may be one of the main advantages of the partnership as a form of business. The other main attraction to the partnership as a form of business is partnership tax treatment. From a tax standpoint the partnership is as straightforward as the sole proprietorship. There is no tax at the partnership level. All tax consequences are passed through to the
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Ashley and Bradley started an accounting firm and choose general partnership as the legal form of conducting business. General partnership also referred to as ordinary partnership is an agreement between two or more people to conduct business jointly with the intention of gaining profit. This type of partnership gives the co-owners equal management responsibility, unlimited liability, as well as a share of the business profits. The success and growth of the accounting firm justified the addition
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Explaining Basic Accounting Concepts and Business University of Phoenix Introduction Accounting has become an indispensible part of today’s economy. It is being used to keep a track of company’s profit or loss, assets, liabilities and owner’s equity. Financial accounting, on the other hand, is to prepare financial reports to external parties such as: investors, creditors, and governmental agencies. However, prior to reporting any information to external users, financial accounting must be completed
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Small Business Idea Paula Boyce University of Phoenix Accounting ACC - 561 Professor Trenda Hackett December 07, 2011 Small Business Idea The government has released fund for creating small businesses. One’s interest is to establish a small business and must determine which of the four forms of business organization will best suit the business chosen. Legal, tax, accounting, and other implications when selecting from the four business types are matters of considerations (University
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standard, “The Hierarchy of Generally Accepted Accounting Principles,” that defines the meaning of generally accepted accounting principles. This standard identifies the sources of accounting principles and the framework for selecting the principles to be used in the preparation of financial statements. The standard categorizes the major sources of GAAP as follows: FASB Standards, Interpretations, and Staff Positions; APB Opinions; and AICPA Accounting Research Bulletins (Kieso,D.E., pp.12) As
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employee, and that is the owner Roberto Santiago Juarez at the time of the launch of the company. With over seventeen years of experience in the security field he will oversee the entire operations of the security company. He will mange and finance/accounting, hiring, and human respources. In turn, security officers will be employed as client engagments are created and will be accounted for as a cost of sales. In turn, RSJ Security Services will provide professional and detailed security for its clients
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Explaining Basic Accounting Concepts and Business Structures University of Phoenix 11/20/2010 Accounting 537 Explaining Basic Accounting Concepts and Business Structures There are many important aspects of accounting. The generally accepted accounting principles are accounting rules set out for companies to follow to ensure all companies are on the same page business wise. Qualities of accounting are important in the decision making process of accounting. Accrual and
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